Question

Explain the importance of international finance.

Describe the importance of international finance?

Answer 1

1. International finance helps in calculating exchange rates of various currencies of nations and the relative worth of each and every nation in terms thereof.
2. It helps in comparing the inflation rates and getting an idea about investing in international debt securities.
3. It helps in ascertaining the economic status of the various countries and in judging the foreign market.
4. International Financial Reporting System (IFRS) facilitates the comparison of financial statements made by various countries.
5. It helps in understanding the basics of international organizations and maintaining the balance among them.